© Reuters. FILE PHOTO: The World Bank logo is seen at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File Photo
By Felix Onuah
ABUJA (Reuters) -Nigeria’s cabinet has approved proposed borrowing of $1.5 billion from the World Bank, its finance minister said on Monday.
Olawale Edun, who is also coordinating minister for the economy, told reporters after a cabinet meeting the World Bank had agreed to process the concessionary financing.
On Friday, the World Bank said it was in talks with Nigeria to provide $1.5 billion in financing at the request of the government to support key policy reforms.
“This loan was approved by the cabinet today,” Edun said.
President Bola Tinubu has embarked on the country’s boldest reforms in decades to try to boost economic growth which has been sluggish for several years.
Tinubu has scrapped a popular but costly petrol subsidy and lifted foreign exchange trading restrictions. But the action has worsened double-digit inflation currently at an almost 20-year high, fuelling anger and frustration for a population grappling with a cost of living crisis.
Edun said it is on the basis of reforms taken by the government that the World Bank is willing to process the loan.
He also added the government approved an $80 million financing from African Development Bank for a project in southwest Ekiti state to support youth in the knowledge economy.